HSBC profits nearly double to $8.4bn

8 May 2013

HSBC nearly doubled pre-tax profits to $8.4 billion in the first quarter of 2013.

Trading conditions in the bank's key markets improved allowing it to make such large gains.

The figures are a 95 per cent increase on the same quarter of 2012 and were helped by a reduction in losses from bad debts and provisions for other risks.

In a statement, the company said: "We have strengthened our capital position and remain one of the best-capitalised banks in the world, allowing us both to invest in organic growth and grow dividends."

HSBC has been making several cuts within the organisation, which is estimated to be saving the company about $3.6 billion. The bank has already stated there is room for a further $1 billion in further savings this year.

Costs in the first quarter were down ten per cent from a year ago and now consist of about 53 per cent of income. The company is aiming to get the percentage below 52 per cent by the end of 2013.

By Asim Shah

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